ROSELAND, N.J. - The private sector in the United States saw an addition of 140,000 jobs in February, while annual pay increased by 5.1 percent compared to the previous year, according to data released by the ADP National Employment Report. This report, a collaboration between the ADP Research Institute and the Stanford Digital Economy Lab, offers a snapshot of employment based on the payroll data of over 25 million U.S. workers.
In February, job growth was observed across various sectors, with the service-providing sector adding 110,000 positions and the goods-producing sector contributing 30,000 jobs. Notably, construction saw an increase of 28,000 jobs, while manufacturing added 6,000 positions.
The report also highlighted regional job changes, with the West leading with 42,000 new jobs, followed by the Midwest at 39,000, the South with 37,000, and the Northeast adding 20,000 positions. When looking at company sizes, medium-sized establishments (50-499 employees) saw the largest growth with 69,000 jobs, followed by large establishments (500+ employees) with 61,000, and small establishments (1-49 employees) adding 13,000 jobs.
Pay gains for those changing jobs rose to 7.6 percent year-over-year, marking the first increase since November 2022. However, pay gains for job-stayers continued to decelerate, reaching 5.1 percent, the smallest increase since August 2021.
The report's findings are considered an independent measure and offer a high-frequency, near real-time view of the U.S. employment situation. This information is particularly relevant for understanding the dynamics of the labor market without directly influencing Federal Reserve rate decisions, as noted by Nela Richardson, chief economist at ADP.
This article is based on a press release statement from ADP, Inc.
InvestingPro Insights
The recent update on the U.S. job market by ADP highlights a steady growth in employment, which aligns with the company's strong financial performance. According to InvestingPro data, ADP boasts a market capitalization of $100.23 billion, underpinning its significant presence in the professional services industry. The company's revenue growth over the last twelve months as of Q2 2024 stands at 7.76%, indicating a robust expansion in its business operations.
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